California Board of Accountancy
Encyclopedia
The California Board of Accountancy (CBA), created by statute in 1901, is a semi-autonomous State of California agency under the California Department of Consumer Affairs
whose purpose is to protect consumers by ensuring only qualified licensees practice public accountancy
in accordance with established professional standards in California.
The CBA currently regulates over 5,000 firms and nearly 81,000 Certified Public Accountant
(CPA) licensees, the largest group of licensed accounting professionals in the nation. The agency is unique in California in its authority to license and discipline not only individuals but also firms including partnerships and corporations. Its mandate is to regulate the accounting profession for the protection of the public by establishing and maintaining standards of qualification and conduct within the profession. It fulfills this mandate primarily through its authority to license.
and fire, including all the documents of the first 65 licensees. The secretary-treasurer of the CBA was able to reconstruct the records by corresponding with each of the licensees.
In 1929, the CBA became part of the Department of Professional and Vocational Standards. In 1971 it was moved to the California Department of Consumer Affairs
and subsequently moved to Sacramento
.
consumers by performing several functions. It starts by ensuring candidates are qualified to take the Uniform Certified Public Accountant Examination
(CPA Exam). Once a candidate has passed the CPA Exam, completed any additional educational requirements, and fulfilled certain experience requirements, the CBA will issue a CPA license. The CBA renews that license every two years provided the licensee has met specified continuing education
requirements. The CBA also registers CPA partnerships and corporations. The CBA ensures licensee compliance with the law through its Enforcement Division. It receives and investigates complaints and takes enforcement action against licensees for violation of CBA statutes and regulations.
The above functions are carried out by various units and divisions within the CBA.
. A peer review is a study of a firm’s accounting and auditing work, performed by an unaffiliated CPA following professional standards. Tax practice is not required to be monitored by peer review. The CBA's peer review program is designed to equip firms to deliver high quality accounting and auditing services to consumers and assist in designing quality control systems to ensure that work products meet professional standards; provide firms an opportunity to learn new or better ways to improve services; and give consumers an extra measure of assurance by knowing the CPA firm they hire has successfully completed a peer review and meets the profession’s standards. Firms that fail their peer review are required to report that fact to the CBA.
appoints four of the public members and all seven of the licensees. The Senate Rules Committee and the Speaker of the Assembly each appoint two public members. In appointing the seven licensees, the Governor must appoint at least two licensee members who represent small accounting firms. Each member of the CBA is appointed to a four year term and may only serve two consecutive terms.
The CBA is currently made up of the following membership:
The CBA appointed Patti Bowers as its Executive Officer in October 2008.
California Department of Consumer Affairs
The California Department of Consumer Affairs is a department under the California State and Consumer Services Agency. DCA's stated mission is to serve the interests of California's consumers by ensuring a standard of professionalism in key industries and promoting informed consumer practices...
whose purpose is to protect consumers by ensuring only qualified licensees practice public accountancy
Accountancy
Accountancy is the process of communicating financial information about a business entity to users such as shareholders and managers. The communication is generally in the form of financial statements that show in money terms the economic resources under the control of management; the art lies in...
in accordance with established professional standards in California.
The CBA currently regulates over 5,000 firms and nearly 81,000 Certified Public Accountant
Certified Public Accountant
Certified Public Accountant is the statutory title of qualified accountants in the United States who have passed the Uniform Certified Public Accountant Examination and have met additional state education and experience requirements for certification as a CPA...
(CPA) licensees, the largest group of licensed accounting professionals in the nation. The agency is unique in California in its authority to license and discipline not only individuals but also firms including partnerships and corporations. Its mandate is to regulate the accounting profession for the protection of the public by establishing and maintaining standards of qualification and conduct within the profession. It fulfills this mandate primarily through its authority to license.
History
The California Board of Accountancy (CBA) was established in 1901 in San Francisco. All the records were destroyed in the 1906 San Francisco earthquake1906 San Francisco earthquake
The San Francisco earthquake of 1906 was a major earthquake that struck San Francisco, California, and the coast of Northern California at 5:12 a.m. on Wednesday, April 18, 1906. The most widely accepted estimate for the magnitude of the earthquake is a moment magnitude of 7.9; however, other...
and fire, including all the documents of the first 65 licensees. The secretary-treasurer of the CBA was able to reconstruct the records by corresponding with each of the licensees.
In 1929, the CBA became part of the Department of Professional and Vocational Standards. In 1971 it was moved to the California Department of Consumer Affairs
California Department of Consumer Affairs
The California Department of Consumer Affairs is a department under the California State and Consumer Services Agency. DCA's stated mission is to serve the interests of California's consumers by ensuring a standard of professionalism in key industries and promoting informed consumer practices...
and subsequently moved to Sacramento
Sacramento, California
Sacramento is the capital city of the U.S. state of California and the county seat of Sacramento County. It is located at the confluence of the Sacramento River and the American River in the northern portion of California's expansive Central Valley. With a population of 466,488 at the 2010 census,...
.
Functions
The CBA protects CaliforniaCalifornia
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
consumers by performing several functions. It starts by ensuring candidates are qualified to take the Uniform Certified Public Accountant Examination
Uniform Certified Public Accountant Examination
The Uniform Certified Public Accountant Examination is the examination administered to people who wish to become Certified Public Accountants in the United States....
(CPA Exam). Once a candidate has passed the CPA Exam, completed any additional educational requirements, and fulfilled certain experience requirements, the CBA will issue a CPA license. The CBA renews that license every two years provided the licensee has met specified continuing education
Continuing education
Continuing education is an all-encompassing term within a broad spectrum of post-secondary learning activities and programs. The term is used mainly in the United States and Canada...
requirements. The CBA also registers CPA partnerships and corporations. The CBA ensures licensee compliance with the law through its Enforcement Division. It receives and investigates complaints and takes enforcement action against licensees for violation of CBA statutes and regulations.
The above functions are carried out by various units and divisions within the CBA.
- The Examination Unit ensures that only candidates who meet certain qualifications are able to take the Uniform CPA Examination.
- The Initial Licensing Unit ensures that only those who have passed the Uniform CPA Examination and meet the appropriate experience requirements are issued licenses to practice public accountancy in California.
- The Renewal and Continuing Competency Unit ensures that only licensees who have met specific continuing educationContinuing educationContinuing education is an all-encompassing term within a broad spectrum of post-secondary learning activities and programs. The term is used mainly in the United States and Canada...
requirements are allowed to continue practicing public accountancy in California. - The Practice Privilege Unit ensures that the CBA is aware of out-of-state licensees who are practicing public accountancy in California.
- The Enforcement Division ensures that practicing licensees in California are held to the highest standards, both professional and ethical.
Peer review
On January 1, 2010, a new law, AB 138 (Chapter 312 of 2009), took effect in California requiring all accounting firms providing accounting and auditing services to undergo a mandatory peer reviewPeer review
Peer review is a process of self-regulation by a profession or a process of evaluation involving qualified individuals within the relevant field. Peer review methods are employed to maintain standards, improve performance and provide credibility...
. A peer review is a study of a firm’s accounting and auditing work, performed by an unaffiliated CPA following professional standards. Tax practice is not required to be monitored by peer review. The CBA's peer review program is designed to equip firms to deliver high quality accounting and auditing services to consumers and assist in designing quality control systems to ensure that work products meet professional standards; provide firms an opportunity to learn new or better ways to improve services; and give consumers an extra measure of assurance by knowing the CPA firm they hire has successfully completed a peer review and meets the profession’s standards. Firms that fail their peer review are required to report that fact to the CBA.
Board
The 15-member board is composed of seven CPA licensees and eight public members. The GovernorGovernor
A governor is a governing official, usually the executive of a non-sovereign level of government, ranking under the head of state...
appoints four of the public members and all seven of the licensees. The Senate Rules Committee and the Speaker of the Assembly each appoint two public members. In appointing the seven licensees, the Governor must appoint at least two licensee members who represent small accounting firms. Each member of the CBA is appointed to a four year term and may only serve two consecutive terms.
The CBA is currently made up of the following membership:
- Sarah (Sally) Anderson, CPA, President
- Marshal Oldman, Esq., Vice President
- Leslie J. LaManna, CPA, Secretary/Treasurer
- Diana L. Bell
- Alicia Berhow
- Michelle R. Brough, Esq.
- Donald A. Driftmier, CPA
- Herschel T. Elkins, Esq.
- Laurence (Larry) Kaplan
- Louise Kirkbride
- Kitak (K.T.) Leung, CPA
- Manuel Ramirez, CPA
- Michael M. Savoy, CPA
- David L. Swartz, CPA
- Lenora Taylor, Esq.
The CBA appointed Patti Bowers as its Executive Officer in October 2008.